# WOMBAT CAPITAL MARKETS LLC X-17A-5 (2019-02-27) — Broker-dealer annual report - Company: WOMBAT CAPITAL MARKETS LLC - Form: X-17A-5 - Filed: 2019-02-27 - Period: 2018-12-31 - Accession: 0001544304-19-000001 - CIK: 1544304 - File #: 8-69059 - Material weakness: Yes - Auditor: YSL & Associates - Auditor location: New York, NY - Contact: Kathy Efrem - Phone: 2128971686 - Signed by: Jean-Jacques Mondoloni (President) Original filing: https://www.sec.gov/Archives/edgar/data/1544304/000154430419000001/Wombatsfc18.pdf --- {0}------------------------------------------------ # WOMBAT CAPITAL MARKETS LLC # STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITOR'S REPORT DECEMBER 31, 2018 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | | OMB APPROVAL | | | |-------------|--------------------------|--------------------------|--| | OMB Number: | | 3235-0123 | | | | Expires: August 31, 2020 | | | | | Estimated average burden | | | | | | hours per response 12.00 | | | | | SEC FILE NUMBER | | 69059 8 - #### FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING | 1/1/2018 | AND ENDING | 12/31/2018 | |------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------|--------------| | | MMDD/YY | | MM/DD/YY | | | A. REGISTRANT DEATHERCATION | | | | NAME OF BROKER-DEALER: | | | | | Wombat Capital Markets LLC | OFFICIAL USE ONLY | | | | | | | FIRM ID. NO. | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | 501 Madison Ave, 14th Fl. | | | | New York | (No. and Street)
NY | | 10022 | | (City) | (State) | | (Zip Code) | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | B. ACCOUNTANT IDENTIFICATION | | | | | YSL & Associates LLC | | | | | (Name -- if individual, state last, first, middle name ) | | | | | | | | | 11 Broadway, Suite 700 | New York | NY | 10004 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE:
x Certified Public Accountant
P Public Accountant
Accountant not resident in United States or any of its possessions | | | | | | FOR OFFICIAL USE ONLY | | | \*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2). SEC 1410 (06-02) Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ #### AFFIRMATION I. Jean-Jacques Mondoloni, affirm that, to the best of my knowledge and belief, the accompanying financial statements and supplemental schedules pertaining to Wombat Capital Markets LLC for the year ended December 31, 2018, are true and correct. I further affirm that neither the Company nor any officer or director has any proprietary interest in any account classified solely as that of a customer. Signature Title Notary Public STEVEN A. SANDERS Notary Public, State of New York {3}------------------------------------------------ ## **This report\*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [x] Facing Page. - [x] Statement of Financial Condition. - [ ] Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash Flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Rule 15c3-l - under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule 15c3- l and the Computation for Determination of Reserve Requirements Under Rule 15c3-3. - [ l A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or AfTmnation. - [ l A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule l 7a-5(g)(l ). - [ ] Independent Auditors' Report Regarding Rule 15c3-3 Exemption. - [ ] Rule I 5c3-3 Exemption. Report {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOU TING FIRM** To the M mber of Wombat Capital Markets LLC ## **Opinion on the Financial tatement** We have audited the accompanying statement of financial condition of Wombat Capital Markets LLC (the Company ') as of December 31 2018 and the related notes (collectively referred to as the financial statement'). In our opinion the statement of financial condition presents fairly in all material respects the fina ncial position of the Company as of December 31 2018 in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** This financial statement is the responsibility of the Company s management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting O ersight Board (United States) (PCAOB) and are requir d to be indep nd nt with respect to the Company in accordanc with the U.S. fi deral s curiti s laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement whether du to error or fraud. Our audit includ d performing procedures to assess the risks of material misstatement of the financial statement whether due to error or fraud and perfonning procedures that respond to thos risks. Such procedures included examining on a test basis evidence regarding the amounts and disclosures in th financial stat, ment. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as e aluating the overall presentation of the financial statement. We believe that our audit pro ides a reasonable basis for our opinion. We have served as Wombat Capital Markets LLC's auditor since 2014. e\ York February 22 2019 {5}------------------------------------------------ # **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018** ### **Assets** | Cash | \$ | 76,348 | |----------------------------------------|----|-------------| | Accounts receivable | | 27,694 | | Prepaid expenses | | 29,596 | | Other assets | | 885 | | Total assets | \$ | 134,523 | | | | | | Liabilities and Member's Capital | | | | Liabilities: | | | | Accounts payable | \$ | 3,213 | | Member's capital | | 131
,310 | | Total liabilities and member's capital | | 134,523 | **The accompanying notes are an integral part of this financial statement.** {6}------------------------------------------------ # **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018** #### **Note 1 - Operation and Structure** Wombat Capital Markets LLC (the "Company"), is a limited liability company organized under the laws of the State of New York, and is a wholly owned subsidiary of Wombat Worldwide Group LLC (the "member")., The Company is a broker-dealer registered with tbe Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934 and operates under a membership agreement with the Financial Industry Regulatory Authority ("FINRA"). The Company is required to maintain a minimum net capital pursuant to SEC rule **l** Sc3-l . ## **Note 2 - Summary of significant accounting policies** ## Basis of accounting and use of estimates These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. #### Accounts Receivable Accounts receivable are comprised of receivables for fees. The Company evaluates collectability of its accounts receivable and determines if an allowance for uncollectible accounts is necessary based on historical payment information or known customer financial concerns. There was no allowance for uncollectible accounts at December 31, 2018. #### Income taxes The Company is a single member limited liability company for federal, state, and local income tax purposes. As such, the Company is a disregarded entity for tax purposes and does not record a provision for income taxes. The Company's income or loss is included in the tax return of its Member. ### Uncertain Tax Positions Pursuant to GAAP, the Company recognized no material adjustments to liabilities or member's equity. Interest and penalties associated with unrecognized tax benefits wouJd be classified in general and administrative expenses in the statement of operations. The Company bad no unrecognized tax benefits and related interest and penalties expenses. #### **Note 3** - **Compliance with Rule J 5c3-3** The Company does not handle cash or securities on behalf of customers and accordingly bas no obligation under SEC Rule l 5c3-3. {7}------------------------------------------------ # **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2018** #### **Note 4 - Regulatorv requirements** The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-l), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2018, the Company had net capital of \$73,135, which was \$68,135 in excess of its required net capital of\$5,000. #### **Note 5** - **Related partv transactions** Pursuant to an administrative service agreement (the "Agreement") between the Company and its Member, The Company records as a capital contribution, the value of monthly administrative costs borne by its Parent on behalf of the Company. The Company was charged \$73,500 for the year ended December 31 , 2018 under the Agreement. The Member agreed to pay other expenses on behalf of the Company without seeking reimbursement. The Company estimates that such expenses amount to \$3,000. #### **Note 6** - **Concentrations** The Company maintains its cash balance in one financial institution. The Company does not consider itself to be at risk with respect to its cash. The company earned 75% of its revenues from two customers and 72% of the Company's receivables are from one customer. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.